Day 5 Trading Test

So, long story short about today, not a good day for options, really choppy and hard to make money. All in all there were 8 alerts, and none of them really qualified using my setup, but I made the mistake of trying to force a trade, and it cost me. Long story short here, when the setup isn’t there, don’t force a trade, having patience is a much better decision.

The trade I took was $2985 calls at the first buy signal for the day. It really wasn’t a good spot to do so, as the blue line (20ema) was still trending down and below the black line (20sma). Entirely my mistake for taking it there, I normally don’t do such a thing. But I bought 3 contracts at $1.95 and sold for a loss at $1.45.

All in all the 4 buy signals would have averaged about -20%, and the 4 sell signals about breakeven. So the lesson here is that when the channel is flat with a lot of chop, try and avoid taking a trade. I’ve been doing this a long time, but there are still days like this where I make errors.